Mr. Patrick Godin reports

NEW GOLD REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

New Gold Inc. has released its results for the fourth quarter and full year 2023. Full-year production totalled 423,517 gold equivalent (1) ounces at all-in sustaining costs (2) of $1,545 per gold equivalent ounce, achieving the top end of the company's 2023 gold equivalent production guidance range. Another solid quarterly performance delivered strong cash flow from operations of $71-million and positive free cash flow, while still investing in and advancing growth projects that are expected to significantly increase production in the coming years.

(All amounts are in U.S. dollars unless otherwise indicated.)

Focus on operational excellence leads to achieving 2023 production and cost guidance ranges

"Two thousand twenty-three was a successful year for New Gold. We executed on our key priority of stabilizing our operations and delivered consistent results throughout the year," stated Patrick Godin, president and chief executive officer. "As a result, New Gold achieved the top end of its 2023 gold equivalent production guidance and the midpoint of all-in sustaining cost guidance set out at the start of 2023. The company was able to once again demonstrate the free cash flow generation potential in the fourth quarter, despite the capital investment in our projects."

Fourth quarter consolidated gold equivalent (1) production was 105,082 ounces (79,187 ounces of gold, 12.0 million pounds of copper and 157,788 ounces of silver) at all-in sustaining costs (2) of $1,575 per gold equivalent ounce.

Full-year consolidated gold equivalent (1) production was 423,517 ounces (321,178 ounces of gold, 47.4 million pounds of copper and 593,146 ounces of silver), achieving the top end of 2023 consolidated production guidance.

Full-year consolidated all-in sustaining costs (2) of $1,545 per gold equivalent ounce achieved the midpoint of 2023 consolidated cost guidance.

During the fourth quarter, the company generated positive free cash flow (2) of $1-million after investing over $61-million in advancing growth projects. Rainy River had another excellent quarter, generating $24-million in free cash flow (2), net of $24-million in capital expenditures and $7-million in stream payments.

2024 an inflection point as growth projects set for completion, company expected to enter prolonged free cash flow generation period in the second half of the year

"Last week, we outlined our operational outlook for the next three years, highlighting an approximately 35-per-cent increase in gold production and approximately 60-per-cent increase in copper production by 2026. As we work towards completing our growth projects this year, the reduction in operating costs and capital expenditures should see consistent free cash flow generation commencing in the second half of this year. This free cash flow growth is expected to increase over the next three years, in line with our increasing production profiles. We have reached the free cash flow inflection point and I look forward to sharing progress throughout the year," added Mr. Godin.

Two thousand twenty-four consolidated gold production is expected to be 310,000 to 350,000 ounces, compared with 321,178 in 2023. Production is expected to strengthen in the second half of the year, with the second half of 2024 expected to represent approximately 60 per cent of annual production as waste stripping at Rainy River is sequenced in the first half of the year. Two thousand twenty-four copper production is expected to be 50 million to 60 million pounds, approximately 16 per cent higher than 2023, driven by increased contribution from C zone at New Afton.

Two thousand twenty-four total capital is expected to be $290-million to $330-million, as growth projects at both operations are completed in the year. Commercial production at C zone remains on track for the second half of 2024, along with commissioning of the underground crusher and conveyor. Initial production from Rainy River's underground main zone remains on track for the fourth quarter of 2024.

Two thousand twenty-four is expected to be the final year of significant capital spending, as the company starts to realize the benefits of these expenditures. As a result, consolidated gold production is expected to increase by approximately 35 per cent over 2023 to 410,000 to 460,000 ounces in 2026. Copper production is expected to increase by approximately 60 per cent compared with 2023 to 71 million to 81 million pounds in 2026. All-in sustaining costs (on a byproduct basis) (2) are expected to decrease by over 50 per cent compared with 2023 to between $650 and $750 per ounce in 2026.

The higher production, lower total cash costs and lower capital spend over the next three years are expected to drive significant free cash flow for the company.

Revenue increased over the prior-year periods primarily due to higher sales volumes and higher gold prices, partially offset by lower copper prices.

Operating expenses were higher than the prior-year periods due to higher production.

Net loss for the quarter increased over the prior-year period, primarily due to higher unrealized losses on the revaluation of the Rainy River gold stream obligation and the New Afton free cash flow interest obligation, partially offset by higher revenue. For the year ended Dec. 31, 2023, net loss was consistent compared with the prior-year period.

Adjusted net earnings (2) for the quarter were consistent, compared with the prior-year period. For the year ended Dec. 31, 2023, adjusted net earnings (2) increased compared with the prior-year period, primarily due to higher revenue and lower finance costs, partially offset by higher operating expenses, and depreciation and depletion.

Cash generated from operations increased over the prior-year periods primarily due to higher revenue.

Fourth quarter gold equivalent (1) production was 64,290 ounces (62,692 ounces of gold and 127,138 ounces of silver), a decrease over the prior-year period, due to lower gold grade and recovery, partially offset by higher tonnes processed. Full-year gold equivalent (1) production was 259,679 ounces (253,745 ounces of gold and 472,018 ounces of silver), an increase over the prior year, primarily due to higher tonnes processed and higher gold grade. Full-year gold equivalent (1) production achieved the top end of the 2023 guidance range of 235,000 to 265,000 ounces.

Operating expense (4) per gold equivalent ounce for the quarter increased over the prior-year period due to lower sales volume. Full-year operating expense per gold equivalent ounce increased over the prior-year period due to lower capitalized tonnes and increased costs associated with mill maintenance, partially offset by higher sales volume. Full-year operating expense per gold equivalent ounce was above the annual guidance range of $905 to $985 per gold equivalent ounce as a result of the lower capitalized tonnes, previously outlined in the company's third quarter 2023 earnings release.

All-in sustaining costs (2) per gold equivalent ounce for the quarter increased over the prior-year period, primarily due to lower sales volume, partially offset by a lower sustaining capital. Full-year all-in sustaining costs (2) per gold equivalent ounce decreased over the prior-year period, primarily from higher sales volume and lower sustaining capital. Full-year all-in sustaining costs (2) per gold equivalent ounce was within the 2023 guidance range of $1,475 to $1,575 per gold equivalent ounce.

Total capital for the quarter and full year was $24-million and $121-million, respectively, a decrease over the prior-year periods, due to lower capitalized waste mining costs in the year and lower capital development in the Intrepid underground zone. Sustaining capital (2) primarily related to capitalized waste and tailings dam raise. Growth capital (2) is related to the continued development of the Intrepid underground zone. Full-year total capital is below the 2023 guidance range of $145-million to $165-million, with $25-million of capitalized waste deferred to 2024.

Free cash flow (2) for the quarter and year ended Dec. 31, 2023, was $24-million and $55-million (net of $7-million and $29-million stream payments), respectively, an improvement over the prior-year periods, primarily due to higher revenue and a decrease in capital expenditures.

Fourth quarter gold equivalent (1) production was 40,792 ounces (16,495 ounces of gold and 12.0 million pounds of copper), and for the year ended Dec. 31, 2023, gold equivalent (1) production was 163,838 ounces (67,433 ounces of gold and 47.4 million pounds of copper). The increase over the prior-year periods was due to higher grades and recovery. Full-year gold equivalent (1) production exceeded the 2023 guidance range of 130,000 to 160,000 ounces.

Operating expense (4) per gold equivalent ounce decreased over the prior-year periods, primarily due to higher sales volume. Full-year operating expense (4) per gold equivalent ounce was within the 2023 guidance range of $1,035 to $1,115 per gold equivalent ounce.

All-in sustaining costs (2) per gold equivalent ounce decreased over the prior-year periods, primarily due to higher sales volume and lower sustaining capital spend. Full-year all-in sustaining costs (2) per gold equivalent ounce were at the low end of the 2023 guidance range of $1,320 to $1,420 per gold equivalent ounce.

Total capital for the quarter and full year was $36-million and $145-million, respectively, relatively in line with prior-year periods. Sustaining capital (2) is primarily related to the continuation of tailings management and stabilization activities. Growth capital (2) primarily related to C zone development, which advanced 1,242 metres during the quarter. Full-year total capital is at the low end of the 2023 guidance range of $145-million to $185-million.

Free cash flow (2) for the quarter and year ended Dec. 31, 2023, was a net outflow of $11-million and $44-million, respectively, an improvement over the prior-year periods, primarily due to an increase in revenue and a decrease in capital expenditure.

Conference call and webcast for the fourth quarter and full year 2023

The company will host a webcast and conference call tomorrow, Wednesday, Feb. 14, 2024, at 8:30 a.m. Eastern Time, to discuss the company's consolidated results for the fourth quarter and full year 2023.

Participants may listen to the webcast by registering on the company's website.

Participants may also listen to the conference call by calling North American toll-free 1-888-664-6383 or 1-416-764-8650 outside of the United States and Canada, passcode 03373344.

To join the conference call without operator assistance, you may register and enter your phone number on-line to receive an instant automated callback.

A recorded playback of the conference call will be available until March 14, 2024, by calling North American toll-free 1-888-390-0541 or 1-416-764-8677 outside of the U.S. and Canada, passcode 373344. An archived webcast will also be available on the company's website.

About New Gold Inc.

New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The company also holds other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility.

(1) Total gold equivalent ounces include silver and copper produced/sold converted to a gold equivalent. All copper is produced/sold by the New Afton mine. Gold equivalent ounces for Rainy River in Q4 2023 include production of 127,138 ounces of silver (124,421 ounces of silver sold) converted to a gold equivalent based on a ratio of $1,750 per gold ounce and $22 per silver ounce used for 2023 guidance estimates. Gold equivalent ounces for New Afton in Q4 2023 include 12.0 million pounds of copper produced (11.9 million pounds sold) and 30,651 ounces of silver produced (28,838 ounces of silver sold) converted to a gold equivalent based on a ratio of $1,750 per gold ounce, $3.50 per copper pound and $22 per silver ounce used for 2023 guidance estimates.

(2) Total cash costs, all-in sustaining costs (AISC), adjusted net earnings/(loss), adjusted tax expense, sustaining capital and sustaining leases, growth capital, cash generated from operations before changes in non-cash operating working capital, free cash flow, and average realized gold/copper price per ounce/pound are all non-GAAP (generally accepted accounting principles) financial performance measures that are used in this news release. These measures do not have any standardized meaning under IFRS (international financial reporting standards) and therefore may not be comparable with similar measures presented by other issuers.

(3) Production is shown on a total contained basis while sales are shown on a net payable basis, including final product inventory and smelter payable adjustments, where applicable.

(4) These are supplementary financial measures that are calculated as follows: revenue per ounce/pound is revenue divided by gold ounces or copper pounds sold; operating expenses per gold equivalent ounce is operating expenses divided by gold equivalent ounces sold; depreciation and depletion per gold equivalent ounce are depreciation and depletion divided by gold equivalent ounces sold; and operating expenses ($ per ounce gold, co-product) and operating expenses ($ per pound copper, co-product) are operating expenses apportioned to each metal produced on a percentage of activity basis, and subsequently divided by the total gold ounces, or pounds of copper sold, as the case may be, to arrive at per ounce or per pound figures.

(5) Key performance indicator data are inclusive of ounces from ore purchase agreements for New Afton. The New Afton mine purchases small amounts of ore from local operations, subject to certain grade and other criteria. These ounces represented approximately 3 per cent of total gold ounces produced at New Afton during the quarter and 7 per cent for the year ended Dec. 31, 2023, using New Afton's excess mill capacity. All other ounces are mined and produced at New Afton.

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